Flood insurance in Palo Alto and Menlo Park

Only about 20% of American homes in flood-prone areas are covered by flood insurance. Insurers in the US are reluctant to provide cover against flood damage as they regard it an unacceptable risk because of the small number of possible insurers over which the risk can be spread. Strangely most people who purchase home insurance suffer under the mistaken belief that flood damage is covered by a standard homeowner's policy. This is often detrimental to many a homeowner who discovers too late and to their eternal regret that flooding is not covered under their standard policy. To secure mortgage loans backed by federal agencies like FHA and VA, the Federal Government insists on flood insurance in certain areas liable to flooding.

The hard fact is that floods can happen anywhere rain falls. And just because an area has never flooded before doesn't mean that there will not be a first. This is particularly more so at the present time when the dire effects of global warming are being felt the world over. Places from Europe to South America and Australia have seen unprecedented floods and mudslides in the past year. Experts attribute these to climate change resulting from global warming. Scientists predict that at the rate of melting of glaciers and the snows at the Poles, the sea level will rise flooding many low lying areas around the globe. A rising sea level might have a domino effect which could trigger off a series of other unpredictable events. Other reasons for floods are clogged drainage systems, broken levees, hurricanes or flash floods caused by rapid accumulation of rainfall that cannot drain off fast enough.

Actuarial numbers indicate that more homes sustain flood damage every year in the United States than from any other natural cause. But generally flood insurance was disregarded as being superfluous till 1997 and El Nino's torrential rains. It was then that many policy holders learned, to their dismay, the limitations of a standard homeowner's policy. The federal government urges flood insurance by every homeowner even if the home is not located in a designated flood zone. Actuarial data again reveals that as much as 30 percent of all flood insurance claims refer to properties located in areas that are considered low for flood risk.

Congress created the National Flood Insurance Program in 1968 under the auspices of the Federal Emergency Management Agency (FEMA). According to the Agency classification, an area prone to a likely event of 1% or a hundred year flood is classified as a Special Flood Hazard Area (SFHA). All of Palo Alto is considered to be at some risk of flooding with classifications ranging from SFHA to Zone X, where the risk is more moderate. A similar status prevails in Menlo Park.

Allied Brokers of Palo Alto, Ca will advise any homeowner in doubt which flood zone their property falls in. This insurance broking company will be glad to provide literature, more details and a quote on flood insurance, whichever the zone. For flood insurance and all other insurance needs, please contact Allied Brokers through their website www.alliedbrokers.com. Allied Brokers may be contacted on phone (650) 328-1000, fax (650) 324-1142 or on email at abcosales@alliedbrokers.com. You can also contact them using their Online Contact Form.

Cities Served: Menlo Park, Redwood City, Atherton, San Carlos, San Bruno, San Mateo, Burlingame, Foster City, San Francisco, Brisbane, Belmont, Los Altos, Los Altos Hills, Sunnyvale, Mountain View, Cupertino, Saratoga, Half Moon Bay, San Jose, Campbell, Los Gatos, Milpitas, Santa Clara